To all the soldiers who fought for the land of the free and the home of the brave in honor of Memorial Day!
In observance of Memorial Day, we a look at the history of home buying thanks to our veterans in America. Between 1945 and 1952, “the Veterans Administration backed nearly 24 million home loans for World War II veterans,” according to a VA web site. Henceforth, The GI Bill helped boost U. S. home ownership from 44% in 1940 to 62% in 1960. Furthermore, local housing stock increased 21.2% from the pre-war year of 1940 to 1950.
At the height of the Great Depression, in 1932, some 250,000 households lost their property to foreclosure. A year later, half of all U.S. mortgages were in default. At that time, there were more than 1,000 foreclosures a day!
Fun fact: Before the FDR’s New Deal the standard was a five-year mortgage that carried large balloon payments at the end of the contract. After the New Deal, the Home Owners Loan Corporation (HOLC) was created, which began purchasing and refinancing existing mortgages at risk of default. It also introduced the amortized mortgage, allowing borrowers to pay back interest and principle over twenty to thirty years.
In the decades after World War II, America saw business boom, unionization peak, and wages rise. Sustained growth stimulated a new consumer economy. The rapid rise of homeownership and suburban communities helped drive the postwar economic boom. Suburban neighborhoods of single-family homes spread their way through the outskirts of cities.
Unfortunately, not all benefitted however. As we know, many African Americans and other racial minorities found themselves systematically shut out. Today we continue to see the struggle. But all is not lost. Read this article to see more about the challenges and changes in the making.
Veterans Housing Benefits Today!
Get step-by-step instructions for buying a home through the VA home loan program by visiting their website.
And, before you go, fill out our registration form below and let The Dias Team help you find your dream home.
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